UK VAT MOSS after Brexit

Brexit’s date is approaching and UK business are being warned under the likelihood of a ‘no deal’ scenario. EU governments are suggesting UK businesses to implement a series of measures in order to be able to keep with their cross-border operations with the EU.

Mini One Stop Shop (MOSS)

MOSS is an online service that allows EU businesses that sell digital services to consumers in other EU member states to report and pay VAT via a single return and payment in their home Member State. Non-EU businesses can also benefit from this simplified system by registering in an EU Member State.

If the UK leaves the EU with no agreement, businesses will no longer be able to use the UK’s MOSS portal to report and pay VAT on sales of digital services to consumers in the EU and will need to register under the VAT MOSS non-EU scheme.

For those businesses currently using UK VAT MOSS portal to declare their sales of digital services, they will be able to do so for 1Q 2019. This return shall include supplies made since 1 January 2019 until 29 March 2019 – 11PM (Brexit’s date).

However, as previously mentioned, after Brexit UK business will no longer be able to use this systems unless they register under VAT MOSS for non-EU companies. They will need to register in an EU member state by 10 April 2019.

As always we will keep you updated regarding all VAT news from the Brexit and its implication in the European business landscape. 

If you have any comment you can always contact us.

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